03 Feb 2025

How Stara Zagora is Driving Bulgaria’s Economic Future Through Strategic Investment and Innovation

In recent years, Bulgaria’s political landscape has faced numerous challenges. Frequent elections and unstable governance have tested the country’s resilience. However, with the formation of a new government and the launch of the Just Transition Plan, Bulgaria is working to strengthen its stability and encourage regional investment. One of the most promising examples of this transformation is Stara Zagora, a region poised to transform from a traditional industrial center into a thriving economic and technological hub.

Stara Zagora is solidifying its position as a key investment destination. Its strategic location connects it to four major European transport corridors, creating a logistical advantage that, combined with active cooperation between local authorities, businesses, educational institutions and international investors, makes the region ideal for nearby projects. The Just Transition Fund and its associated financial support provide significant opportunities for business development or relocation in industrial parks and pre-developed industrial zones throughout the region, including Radnevo, Kazanlak, Gurkovo, Nikolaevo, Maglizh, Bratya Daskalovi, Galabovo and Chirpan.

The main driver of economic growth in the region are its industrial zones – Zagore, Elenino, etc. These zones offer competitive conditions and modern infrastructure, making them extremely attractive to companies from various sectors. “The Zagore Industrial Zone, covering 28 decares, has already been certified as a strategic investor, which is a great achievement for us,” said Radostin Tanev, Deputy Mayor of Stara Zagora, in an interview. Meanwhile, the Elenino zone is conceived as a green hub for the Balkans and Europe, already attracting investments in panel recycling and battery component production. Covering more than 300,000 sq. m, the Zone provides plots with developed infrastructure, access to green energy and integration of innovative technologies. “Our goal is to offer ready-to-use solutions for investors – land with developed infrastructure, access to green energy and cutting-edge technologies,” says Tanev.

This progress is combined with a surge in investment activity, which reached its peak in 2024. With signed agreements for projects worth over BGN 400 million, Stara Zagora is demonstrating its readiness for a significant economic transformation. One notable project, led by the Turkish company Smart Solar, includes the construction of a solar panel factory, which is expected to create over 880 new jobs by 2026. “Smart Solar’s ​​investment is a game changer that elevates our region to the international stage,” notes Tanev. Another significant development is the planned construction of a thermal power plant in the municipality of Galabovo with an investment of EUR 400 million. The plant will use RDF (Refuse-Derived Fuel) to produce energy, demonstrating a clear commitment to sustainable practices and creating new employment opportunities in the area.

In addition, the stability of the region is supported by demographic advantages. More than 50% of the local workforce is of active working age, which provides a solid foundation for economic growth. “Stara Zagora attracts not only investors, but also young professionals who see the region as a place with excellent job opportunities and a high quality of life,” Tanev emphasizes.

Looking ahead, local authorities are focusing on initiatives that position the region on the global investment map. One such example is Invest Stara Zagora: Why is the time now?, an event held in November 2024, which brought together leading professionals specializing in attracting investment from Europe, Asia and the United States to discuss the region’s advantages. As highlighted during the event by Elias van Heewarden, an expert in GBS optimization, cross-border business and international location strategy, “Stara Zagora has the advantage of its East-West and North-South connectivity, making it a strategic location for manufacturing and Europe-Serving Services.” Such positioning provides the region with a competitive advantage in attracting regional and global investors. According to Tanev, such initiatives not only attract the attention of international experts, but also create new business opportunities. The goal is to continue attracting global investment leaders to such events in order to stand out as an attractive region for various investments. A study conducted in 2024 by PwC, focused on the Stara Zagora region, identified industrial, commercial and infrastructure equipment; Mobility and transport; Information technology and electronics; Energy and renewable resources as sectors with high growth potential in the region.

Stara Zagora proves that with the right strategy and vision, a region can transform from a traditional industrial center into a model for sustainable development and innovation. “We are not just adapting our economy; we are creating conditions for long-term growth,” Tanev concludes. With clear ambitions and a bold vision, the region is on its way to becoming one of the leading economic centers.

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